As announced by EnergyReview.net earlier, Yukos had signed a deal with China’s state-owned Sinopec to deliver 17 million metric tons of oil over four years by rail.
In a statement Fadeyev said, “In 2006 Yukos oil shipments to China will total 15 million metric tons [and] China will pay for everything if Yukos encounters problems with payment.”
“Yukos has already paid 700 million rubles (US$24.1 million) in rail fees, which should cover its shipments through September [and] work with Yukos [is] proceeding as usual, all agreements [are] being fulfilled, the current amount of Yukos oil shipments to China [are] over the projected amount, and the payments were made in advance.”
“[Russian Railways will] not like to lose such an advantageous contract. [We have] already invested, and [will] continue to do so it in the future, in the development of the railroad infrastructure which ensures oil shipments to China,” he added.
Yukos currently sends 124,000 barrels of crude per day to China by rail but it is facing a tax bill of US$3.4 billion, which it has to pay by the end of the month. The firm has warned bankruptcy and/or production cuts may just lie ahead.
